The United Kingdom has a long history with silver, from Sterling silver coinage to the London Silver Fix that set global silver prices for decades. Today, silver remains a popular investment and jewellery metal in the UK, though buyers need to be aware of the 20% VAT that applies to most silver purchases.
Silver Price in UK Today
The silver price in the UK today is approximately GBP 0.98 to GBP 1.00 per gram, or GBP 30.50 to GBP 31.10 per troy ounce. Per kilogram, silver costs around GBP 980 to GBP 1,000.
These prices include the 20% UK VAT, which significantly impacts the cost for retail buyers.
For live silver prices in GBP updated every 60 seconds, visit our homepage at SilverRatesToday.com.
UK VAT on Silver
The 20% Value Added Tax on silver in the UK is one of the highest silver taxes in the world and is a significant consideration for investors. Unlike investment gold, which is exempt from VAT in the UK, silver attracts the full standard rate.
This means if you buy silver bullion in the UK, you immediately pay a 20% premium that you will need to recover through price appreciation before you break even.
Strategies to mitigate UK silver VAT:
Buy in VAT-efficient locations: Some UK dealers offer silver stored in tax-free warehouses in locations like Jersey or Switzerland, where VAT is not charged on purchase. You only pay VAT if you take physical delivery in the UK.
Silver ETFs: Buying shares in a silver ETF such as iShares Physical Silver (SSLN) on the London Stock Exchange is VAT-free, as you are buying a financial instrument rather than physical metal.
Numismatic coins: UK legal tender silver coins such as Britannias are technically VAT-exempt as they are legal tender, though dealers often apply premiums.
Where to Buy Silver in the UK
The Royal Mint: The UK’s official mint produces silver Britannia coins and bars. These are among the most trusted silver products available in the UK.
Online Bullion Dealers: Companies like BullionByPost, The Pure Gold Company, and GoldCore offer competitive prices and secure storage options.
Coin Dealers: For numismatic silver coins, specialist coin dealers offer a wide selection.
Online Marketplaces: Platforms like eBay can offer competitive prices for second-hand silver, though buyer beware of counterfeits.
Sterling Silver in the UK
The term “Sterling” originates from England. Sterling silver is 92.5% pure silver (hallmarked 925) and has been used in British silverware, cutlery, and jewellery for centuries.
When buying sterling silver items in the UK, look for the British hallmark system which guarantees purity. A hallmarked piece will show:
- The assay office mark (London, Birmingham, Sheffield, or Edinburgh)
- The fineness mark (925 for sterling)
- The date letter
Silver as an Investment in the UK
Despite the VAT disadvantage for physical silver, many UK investors hold silver as part of a diversified portfolio. Options include:
Physical silver: Best held outside the UK to avoid VAT Silver ETFs: Listed on LSE, no VAT, but management fees apply Silver mining stocks: Listed on AIM and LSE, no VAT Silver ISA: Some providers allow silver ETFs within an ISA wrapper for tax-free gains
For live silver prices in GBP and other currencies, visit SilverRatesToday.com.